Ariana invested 400 in an account paying an interest rate of 3.8% compounded monthly. Assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 11 years?

Lösung

A r iana in v es t e d 400 in an a cco u n t p a y in g an in t eres t r a t e o f 3.8% co m p o u n d e d m o n t h l y . A ss u min g n o d e p os i t s or w i t h d r a w a l s a re ma d e, h o w m u c h m o n ey, t o t h e n e a res t t e n d o ll a rs, w o u l d b e in t h e a cco u n t a f t er 11 ye a rs ?

Amount : 607.17

Schritte zur Lösung

Translate the problem into an equation:

A = 400 (1 + \frac{0.038}{12})^{12 \cdot 11}

400 (1 + \frac{0.038}{12})^{12 \cdot 11} = 607.16714 \dots

Round to the nearest hundredth:

607.17

Amount : 607.17